How Will AI Change Risk Management?
Are Risk Managers facing a complete overhaul of their positions in the coming years? A new study provides interesting insights into how Artificial Intelligence (AI) will become an important tool for Risk Managers.
A new SAP report analyzes how AI is being utilized to identify unexpected events in the area of governance, risk, and compliance management. The generation of data that enables the identification of possible loss patterns for risk management is becoming significantly important.
The risk manager deals with a variety of risks that influence the company's business goals. Over 88 percent of those surveyed stated that the role will increase or stay the same in significance in five years. Only 12 percent were of the opinion that the risk manager will not be of much relevance in five years.
According to the study participants, the risk manager's tasks will predominantly shift to the data-based identification and interpretation of changes in risk exposure, as well as to establishing and reviewing internal control systems for various risks. This includes the ability to assess trends by exploring existing facts and applying cognitive skills to understand the analyses of large volumes of data and interpret them with regard to the business model. In particular, this requires expertise in problem-solving as well as cross-industry and analytical expertise.
The successful Risk Manager will continue to possess superior communication skills, the ability to handle conflicts, the willingness to learn, and the ability to handle new, complex situations.
To read the new report packed with insights for risk and other corporate governance functions, please click here >>